Consulting: How did this partnership withMercer come to pass?

Miller: With Oliver Wyman as one of the
premier management consultancies and
Mercer one of the leading HR consultancies,
it was natural for us to combine insights in
terms of the industry development, market
development, technological development,
business and operating model changes
knowledge Oliver Wyman brings to the
table along with the tools and overarching
data Mercer brings on the HR side. That was
the rationale for the partnership. The driving
force was that both companies recognized
as our clients move towards implementing
new technologies like artificial intelligence,
they were starting to question what impact
that would have on their workforce and
how should they deal with it. How is my
workforce going to change? What kind of
workforce will I need in 5 to 10 years in
terms of size and shape and how do we need
to adapt to get there?

Consulting: Where are some areas you seeorganizations and workforces furthestbehind in preparation for this digital era?

Miller: It varies by industry. Technology ismore advanced in for example insurance orbanking, but pretty much across the board Ithink workforce implications haven’t reallybeen considered systematically in mostcases. There is new technology that has beenidentified as potentially applicable to helpcreate efficiencies and increase productivity.Our clients are trying to get a handle on whatkind of technology to implement, how to workwith vendors and which ones to use. Anotherarea is organizing the development andimplementation of that technology, and nowas they move towards prototyping or advanceduse cases, our clients start thinking about theimplications on their operating models, thebusiness models, and the workforce.

Consulting: What are strategies companiescan use to prepare their workforces?

Miller: There are two elements here. One
is forecasting and planning and the other
is the recognition that this is not only
something mechanical but fundamentally
a transformation journey. The kind of
workforce companies will need in 5 to 10
years will look materially different in terms
of shape and the kinds of qualifications than
the one we have today. If you think through
and analyze the impact of automation, the
impact of changing skillsets in existing
jobs, new jobs, new roles and then add to
the mix basically new business models and
services emerging with new requirements
you can get to a point where basically only
20 to 30 percent of the current workforce
will remain untouched and develop the skills
and abilities themselves to cope with that
future environment. All the rest will need to
be retrained, reskilled, redeployed, etc. That

Axel Miller

Technology is transforming not just the tools businesses use, but it’s having a fundamental
effect on the workforce as a whole. How companies adapt and prepare their workforces
for the digital era will have a direct impact on their bottom line, and even their survival.
Mercer and Oliver Wyman have joined forces to help companies restructure their
workforces for the digital era, and we caught up with Oliver Wyman Partner Axel Miller
for some insights about how workforces can be transformed to meet the coming challenges.